American Water Valuation
| AWK Stock | USD 138.79 0.90 0.65% |
At this time, the firm appears to be fairly valued. American Water Works shows a prevailing Real Value of $144.03 per share. The current price of the firm is $138.79. Our model approximates the value of American Water Works from analyzing the firm fundamentals such as return on equity of 0.097, and Profit Margin of 0.22 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting American Water's valuation include:
Price Book 2.5935 | Enterprise Value 40.2 B | Enterprise Value Ebitda 15.8103 | Price Sales 5.9521 | Forward PE 24.1546 |
Fairly Valued
Today
Please note that American Water's price fluctuation is very steady at this time. Calculation of the real value of American Water Works is based on 3 months time horizon. Increasing American Water's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
American Water's intrinsic value may or may not be the same as its current market price of 138.79, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 138.79 | Real 144.03 | Target 149.8 | Hype 138.79 | Naive 140.71 |
The intrinsic value of American Water's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence American Water's stock price.
Estimating the potential upside or downside of American Water Works helps investors to forecast how American stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Water more accurately as focusing exclusively on American Water's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use American Water's intrinsic value based on its ongoing forecasts of American Water's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against American Water's closest peers.
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American Valuation Trend
Knowing American Water's actual value is paramount for traders when making sound investment determinations. Using both American Water's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
American Water Total Value Analysis
American Water Works is presently anticipated to have company total value of 40.17 B with market capitalization of 26.87 B, debt of 12.44 B, and cash on hands of 85 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the American Water fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
40.17 B | 26.87 B | 12.44 B | 85 M |
American Water Investor Information
About 94.0% of the company shares are held by institutions such as insurance companies. The book value of American Water was presently reported as 53.17. The company recorded earning per share (EPS) of 5.04. American Water Works last dividend was issued on the 12th of November 2024. The entity had 2:1 split on the 26th of July 1996. Based on the analysis of American Water's profitability, liquidity, and operating efficiency, American Water Works may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.37 | 0.3552 |
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| Total Cash From Operating Activities | 2 B | 1.9 B |
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| Operating Income | 1.6 B | 1.5 B |
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American Water Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Water has an asset utilization ratio of 13.97 percent. This suggests that the Company is making $0.14 for each dollar of assets. An increasing asset utilization means that American Water Works is more efficient with each dollar of assets it utilizes for everyday operations.American Water Ownership Allocation
American Water holds a total of 194.89 Million outstanding shares. The majority of American Water Works outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in American Water Works to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in American Water. Please pay attention to any change in the institutional holdings of American Water Works as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.American Water Profitability Analysis
The company reported the last year's revenue of 4.23 B. Total Income to common stockholders was 944 M with profit before taxes, overhead, and interest of 2.2 B.American Water Past Distributions to stockholders
About American Water Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of American Water Works. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Water Works based exclusively on its fundamental and basic technical indicators. By analyzing American Water's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of American Water's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Water. We calculate exposure to American Water's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of American Water's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.5 B | 1.3 B | |
| Pretax Profit Margin | 0.28 | 0.14 | |
| Operating Profit Margin | 0.36 | 0.37 | |
| Net Profit Margin | 0.22 | 0.23 | |
| Gross Profit Margin | 0.59 | 0.42 |
A single share of American Water represents a small ownership stake in the entity. As a stockholder of American, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
American Water Dividends Analysis For Valuation
Dividends Paid is expected to rise to about 558.6 M this year, although the value of Dividend Yield will most likely fall to 0.02. . At this time, American Water's Retained Earnings are quite stable compared to the past year. Retained Earnings Total Equity is expected to rise to about 1.5 B this year, although the value of Earnings Yield will most likely fall to 0.04.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 532 M | 558.6 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.56 | 0.37 | |
| Dividend Paid And Capex Coverage Ratio | 0.57 | 0.50 |
There are various types of dividends American Water can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of American shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from American Water Works directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When American pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of American Water by the value of the dividends paid out.
American Water Growth Indicators
Investing in growth stocks can be very risky. If the company such as American Water does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 193 M | |
| Quarterly Earnings Growth Y O Y | 0.084 | |
| Forward Price Earnings | 24.1546 |
American Water Current Valuation Indicators
American Water's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final American Water's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as American Water, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use American Water's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes American Water's worth.When determining whether American Water Works is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Water Works Stock. Highlighted below are key reports to facilitate an investment decision about American Water Works Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Water Works. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Water. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Water listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.084 | Dividend Share 2.945 | Earnings Share 5.04 | Revenue Per Share 23.124 | Quarterly Revenue Growth 0.134 |
The market value of American Water Works is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Water's value that differs from its market value or its book value, called intrinsic value, which is American Water's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Water's market value can be influenced by many factors that don't directly affect American Water's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Water's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Water is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Water's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.